Basic Financial Literacy
One of the most exciting things that comes with a job is earning your own money! You may be wondering exactly how do I spend this money? Or do I save it?
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Below are some tips and things you should know about money before entering the workforce.
What is a paycheck?
A paycheck is the money that you get paid by your employer for doing your job. With a paycheck, you also receive a pay stub. A pay stub tells you how much you earned and how much money your employer took out of your paycheck for taxes.
A tax is a mandatory payment collected by local, state, and national governments from individuals or businesses to cover the costs of public goods. Taxes can help fund things like roads, emergency services, defense, education, fire department, and the police.
What is a tax?
Gross vs. Net Pay
A paycheck is the money that you get paid by your employer for doing your job. With a paycheck, you also receive a pay stub. A pay stub tells you how much you earned and how much money your employer took out of your paycheck for taxes.
A paycheck is the money that you get paid by your employer for doing your job. With a paycheck, you also receive a pay stub. A pay stub tells you how much you earned and how much money your employer took out of your paycheck for taxes.
What is direct deposit?
The 50/30/20 Rule
Budgeting is just a way to manage your spending. The 50/30/20 rule is a simple system to help you handle your money. But how do I use this rule to help me?
• 50% for Needs: Use half of your pay for things you must have. Some things include transportation, groceries, school supplies, family contributions, and anything you can't live without.
• 30% for Wants: Spend this on things you enjoy but do not actually need. Some examples of wants are subscriptions, hobby supplies, eating out at a restaurant, clothing purchases, or video games.
• 20% for Savings: Put this portion away for your future. This can be contributed to an emergency fund, retirement account, or anything you want to save for! Your parent or guardian can help set these accounts up.
Use this list to organize your money!
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ABLE accounts allow those with disabilities to save and invest. Starting at earlier than age 46, you can start to invest and save money. These savings usually won't affect with your eligibility for important federal benefits you might need and are under Section 529A of the Internal Revenue Service tax code.
Banking
Safety
Keeping your hard earned money safe starts with setting up a private banking account. Always keep your passwords and financial details secret, and avoid accessing your portal on public Wi-Fi networks. Consistently check your history for errors and remain alert to prevent any suspicious activity.